Provinces develop consensus on penalty enhancement: failure to meet Nepra standards by Gencos, Discos

The provinces have developed consensus on enhancement of penalty limit to Rs 100 million against power generation and distribution companies which fail to meet performance standards set by National Electric Power Regulatory Authority (Nepra). The proposed penalty limit will be tabled before the Council of Common Interests (CCI) for formal approval.
Sources told Business Recorder that the committee meeting of the CCI on Nepra, chaired by Federal Minister of Petroleum and Natural Resources, Syed Naveed Qamar on Wednesday developed consensus on the imposition of penalty of Rs 100 million on power generation and distribution companies that violate set performance standards.
At present, Nepra charges Rs 0.3 million penalty from companies engaged in electricity business and had proposed this during the meeting to enhance its limit to Rs 100 million. "The consumers will benefit as the electricity companies improve their quality of electricity supply," sources said, adding that one member of the committee had proposed to raise penalty limit to Rs 200 million that was not agreed.
Meanwhile, according to a statement, the meeting discussed the proposed amendment to National Electric Power Regulatory Authority (Nepra) Act with the view to formulating its recommendations to be tabled before CCI, on inter-alia, the issue of the proposed amendment by Nepra in the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Bill 2010.
Syed Naveed Qamar welcoming the participants, opened discussion on the subject and exchanged views on various issues pertaining to the proposed amendment. The meeting agreed on raising the penalty amount to higher limits for violation of performance standards, by any company engaged in the electricity business.
With regard to the existing powers of review of Nepra against its own determination, decisions or any other orders, the meeting was of the view that restrictions in rules may be brought into the statute. The meeting did not agree with the proposed amendment regarding powers of review by Nepra against the decision or order of the provincial offices of inspection - being provincial entities.
The meeting was also attended by Federal Minister for Livestock and Dairy Development Mir Humayun Aziz Kurd, Ms Shazia Marri, Provincial Minister for Electric Power from Sindh, Nadeem Babur, Chairman Punjab Power Board, Govt of Punjab, Shumail Butt, Legal Consultant, and Finance Dept Govt of Khyber Pukhtunkhawa.